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Bitcoin in Africa

More Cryptocurrency Adoption: A Channel For Enabling Financial Prosperity in Africa

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Today, Africa is seen as one of the hottest bitcoin destinations in the world, characterized by increasingly surging engagements in the crypto space. As more Africans have continued to adopt the use of cryptocurrencies for financial transactions, we have seen how it has translated to some form of economic growth and financial prosperity for crypto owners and traders. This progressive rate of cryptocurrency adoption is opening up diverse streams of income generation paths for Africans, and more adoption would mean even bigger harvests of financial rewards for Africa’s crypto merchants.

Popularly, one of the major ways to generate income via cryptocurrencies is to trade them for profit. If the crypto conversation in Africa continues to wax stronger, more Africans could be able to achieve financial freedom by exploiting short-term opportunities in cryptocurrencies. This is simply the act of trading cryptocurrencies. An increased crypto adoption would expand the market size for cryptocurrency trading, ultimately increasing access to trading opportunities. With more Africans owning cryptocurrencies, it would be easier for an increased number of Africans to tap into the stream of income that could be unlocked from trading cryptocurrencies, thereby, earning additional income by buying and selling their crypto coins or utilizing a Contract For Difference (CFD).

Cryptocurrencies could also offer a long term system of wealth creation through investments in cryptocurrencies. This also involves trading cryptocurrencies, but with a long-term perspective. Buying and holding crypto for some time has risen to become a wealth creation path for many of the active crypto players in Africa and Nigeria, particularly. Recently the Bitcoin attained an all-time high of about $34,000 for 1 BTC, a 305% increase over the past year. This indicates the promising potential of cryptocurrencies as investment assets, with very attractive returns on investment.

Beyond trading cryptocurrencies for wealth generation, the plethora of blockchain-powered financial services that can be built with cryptocurrencies are also capable of positioning Africans towards the path of economic prosperity.

Currently, a lot of Africans do not enjoy the benefits of financial inclusion because existing traditional financial systems are incapable of ensuring that everyone enjoys inclusive access to financial services. With emerging disruptive financial technologies like Decentralized Finance (DeFi), Africans can enjoy permissionless easy access to financial services, helping the many low-income inhabitants and SMEs that exist within the continent to access the financial services that they require to attain financial prosperity in their economic endeavours.

The growth of businesses within Africa is a critical indicator of financial prosperity within the continent. Most of the financial services available to help African businesses scale and grow can be significantly improved with crypto-powered services. For example, in fundraising for businesses, the utilization of Initial Coin Offerings (ICOs) can help more African businesses access funds to grow their businesses in an easier way than most existing fundraising systems offer. An ICO offers businesses a way to raise funds through the creation and exchange of digital tokens, without equity commitments. This is a much flexible way for businesses to raise funds, and can ultimately open up more innovative paths to the provision of resources for the sustenance of the growth of several African businesses. With the growth of businesses within Africa, the creation of more jobs and access to increased income will inevitably follow.

This year, Africa is set to commence the African Continental Free Trade Area (AfCFTA), which would immensely transform trade and commercial activities within the continent, adding several trillions of dollars to the economic value of the continent. There is no doubt that payment is a crucial aspect of the AfCFTA, since it depends on an efficient payment system to scale. For the AfCFTA and the tons of financial transactions that occur within Africa, leveraging cryptocurrencies for payments, will undoubtedly be greatly beneficial. This is because cryptocurrency-powered payment systems provide better cost-effective and easier cross-border remittance and trade, faster financial transactions and can even directly offer an increase in the value of the payment received by recipients, since most cryptocurrencies experience a significant increase in their value. Leveraging cryptocurrencies for as a payment medium in Africa, when properly harnessed, is, therefore, capable of facilitating financial prosperity for all inhabitants of the continent.


When Africans embrace and utilize cryptocurrencies, it would be possible for financially trapped Africans to escape the grave economic consequences associated with hyperinflation, rapid devaluation of their local currencies and other adverse effects that result from the decisions of central authorities like the government and Central Banks. With a crypto-powered economy, Africans would be able to enjoy a more shock-absorbant economic system.

However, all these benefits of cryptocurrencies, and their potential to offer financial prosperity all across Africa is dependent on the rate of adoption of cryptocurrencies within the region. If Africans object to adopting cryptocurrencies, it would be almost impossible to enjoy any of these benefits. However, with Africa’s increasing adoption of cryptocurrencies, financial freedom and prosperity could be more feasibly achieved in the near future across various African nations.




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Kehinde is a driven human who is passionate about leveraging technology to transform the future of humanity and the way we all live. His interest lies in constantly getting valuable information and being part of a mission that seeks to create a transformative radical shift.

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Bitcoin in Africa

The rise of CBDC in African economies

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Many nations have taken cues from the world of crypto and its resounding successes over the last decade. In order to avoid getting left behind, governments worldwide are increasingly turning their attention towards implementing some form of digital currency, a CBDC which in full is Central Bank Digital Currency. Although inspired by cryptocurrencies, CBDC’s are quite different from traditional crypto platforms. The main differences are that CBDC’s are unlikely to be decentralized, the supply of this currency regulated by the host’s country’s central bank as the CBDC is designed to operate as a sovereign legal tender, the digitized form of the host country’s fiat currency. Thus, a central bank may issue digitized tokens of its currency of which their value is pegged to the fiat currency of the nation in question, making CBDC’s stablecoins.

Africa has seen a rise in the use of cryptocurrencies and it’s still pushing frontiers in this sector. Although the use of crypto in many African nations is becoming more and more pervasive by the day, the tone of governments in many of these countries toward the sector is cautious at best and threatening at worst. However, a few nations have voiced interests in creating digitized versions of their legal tender to function as a CBDC. Amongst these are Ghana, Nigeria, Morocco, Kenya and Tunisia.

Many of these projects are still in the research phase or developmental phase however. A good example is Ghana’s proposed CBDC, the E-cedi being developed in partnership with German company, Giesecke + Devrient. Nigeria’s CBDC project, the eNaira has been announced and according to Nigeria’s central bank, this CBDC will be launched sometime in 2021. To that end, the CBN has partnered with fintech company, Bitt Inc. to serve as the technical partner in the eNaira’s development. Reportedly, the CBN had made the decision to digitize the Nigerian Naira in 2017.

While the pursuance of digital currencies in African nations is a welcome development, implementation of these schemes isn’t without challenges. Chief among the issues countries in Africa face would be the already existing financial service inequality and poor penetration of internet access in the continent. These challenges must be tackled in order to allow for mainstream adoption of CBDCs and the subsequent provision of financial inclusion. The benefits largely depend on the peculiarities of the nation deploying them. For instance, a digital currency is thought to help Nigeria increase foreign remittances, it’s second largest source of forex after oil. Whatever the outcome of these projects, it is becoming apparent that CBDC’s have come to stay.

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Bitcoin in Africa

Why the Nigerian Government is Panicking About Bitcoin

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Fear, social media clamour, open outrage amongst citizens and vivid apprehension of the outcome of what the ban on crypto means for traders and investors as well as fintech companies. To some, it was a welcome development aimed at driving the ship of the country towards a better shore. To others, it was another rule by the Nigerian government to clamp down on technology. On February 5, 2021, the Central Bank of Nigeria issued a circular directing all commercial banks to close the accounts that are connected to cryptocurrency platforms. This was later given further clarification in a 5-paged article stating a plethora of reasons why it is not advisable to trade cryptocurrency. The article explained that the ban does not mean that Nigerians can no longer trade cryptocurrency. However, it is a measure to dissociate commercial banks from all forms of crypto trading which are considered wrong. 

CBN’s reasons for banning cryptocurrency 

The 5-paged article was released 2 days after the crypto ban. It explains why it is inadvisable to trade cryptocurrency and the justification behind the orders of the CBN. Rather than give a fair definition of cryptocurrency, CBN focused on the partial lapses of the currency in explaining its meaning. In the explanatory article, cryptocurrency was defined as “digital or virtual currencies issued by largely anonymous entities and secured by cryptography. Cryptography is a method of encrypting and hiding codes that prevent oversight, accountability, and regulation.” 

While explaining the rationale behind the ban, the circular reiterates that Nigeria is not the first country to place restrictions on cryptocurrency. Countries like China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Bolivia, Kyrgyzstan, Ecuador, Saudi Arabia, Jordan, Iran, Bangladesh, Nepal and Cambodia have placed certain restrictions on the trading of cryptocurrency. Quoting various instances where cryptocurrencies have been derided by various persons and institutions without reference to cases where Bitcoin has been praised by reputable investors and institutions. In the latter instance, Bitcoin was referred to as the new gold.  

One of the reasons behind the ban is that the cryptocurrencies are issued by unregulated or unlicensed persons which contravenes the CBN Act of 2007. Also, its anonymity and decentralization quality show that “its patrons and users value anonymity, obscurity, and concealment”. The CBN explained that there would be no need for such concealment if the activities of users were legal. Nevertheless, the CBN forgot that apart from using crypto for transactions, it can also be used as a store of value. 

Lack of centralization and the accompanying issues of anonymity are the predominant reasons stated by the CBN before its ban on cryptocurrency. 

You may wonder why the CBN waited till 2021 to place a ban on crypto despite its popularity since 2010. This reason is not far-fetched as it explains the true reason behind February directives on cryptocurrency. 

Hidden reasons behind the ban on cryptocurrency 

Few months after the directives were issued to commercial banks in Nigeria, Chainalysis, a blockchain research firm, issued a report that the volume of a dollar received from crypto users in Nigeria has grown between 2020-2021. In May, Nigeria received $2.4 billion worth of crypto compared to $684 million received in December 2020. The increase occurred after the clampdown on crypto by the central bank. This shows that CBN orders have little or no effect on cryptocurrency trading. 

Last October marked an important turning point in the history of Nigeria. It marked a month of consciousness amongst the youths, protest rocks every state in Nigeria against police brutality and an end to the Sars police unit under the hashtag #Endsars. The protest was the first of its kind after more than a decade. During the EndSars protest, various groups sprang up to receive donations for demonstrators to provide them with first aid, food and security. The accounts of these groups were suspended which led one of such groups, Feminist Coalition to start receiving Bitcoin for donations due to its decentralization. About $150,000 worth of Bitcoin was received which was used to support EndSars protesters.

 Jack Dorsey, Founder/CEO of Twitter reshared the FemCo Bitcoin donation page with the caption “donate via bitcoin to help EndSars”. His actions might have explained the ban on Twitter by the Nigerian government. The use of cryptocurrency to fuel such protests is the main unstated reason behind the recent ban. 

In conclusion, the Nigerian government may pretend that the clampdown on cryptocurrency is a result of its lapses usually quoted by various countries as reasons behind restrictions. However, the activities of the Nigerian government is the fear of the inability to control the currency. It is gradually becoming the action of the current government to restrict whatever it can not control. 

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Bitcoin in Africa

How Demographic Trends are Pushing Cryptocurrencies Adoption in Africa

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Demographic trends

The African crypto market has seen a tremendous boom in the last few years. Driving this growth are a myriad of factors among which are economic inequality, volatile fiat currencies, low financial inclusion as well as high unemployment rates. These drivers of market growth are also greatly intertwined with Africa’s unique demographics which entail the distribution and categorization of the population.

The goal or aim of many cryptocurrency projects and the movement of the community in general is to get to a point where they’re widely used and accepted by individuals, corporations and governments. This implies mainstream adoption, much like the pervasive nature of mobile banking today. Africa presents unique opportunities owing not just to the socioeconomic clime but it’s demographics as well.

For cryptocurrencies to achieve mainstream adoption, they would have to in a sense become the norm and be widely accepted and recognized by virtually all corners of society, much like Facebook is in the social media world. In Africa, despite the size of the crypto market, cryptocurrencies are still a good distance away from what one would describe as popular acceptance. The sector is growing no doubt, however, that growth is reflective of Africa’s unique demographics and population scene.

It is without question that the African continent is the youngest, in terms of median age at 19.7 years. There are about 600 million people aged between 15 and 45 in Africa, representing nearly half of Africa’s population. Many nations, especially in Sub-Saharan Africa are in stage 2 of the demographic transition (high birth rates and high death rates – relatively low life expectancy) which is representative of the economic climes of these nations. A report found that around 13 million young Africans enter the labour market each year against 3.7 million jobs, most created by the informal sector. Therefore many African youth are laden with economic difficulties at that important time in their lives.

However, Africa’s young population, generally speaking, has a greater proclivity for being more open minded to technology adoption. Education and literacy has played a role in this with Africa’s literacy rate at around 70%. While not comparable to that of other continents, this rate is driven greatly by the large young population Africa boasts of. In any case, seeing the economic conditions of many African countries, and a tendency for young people to adopt and/or trust new technologies better and faster than other age groups gives some explanation to how quickly the crypto market is growing on the continent. As the years go by, the level of adoption would inevitably continue to increase as the current youth population expands till it gets to the point where blockchain becomes so pervasive that it achieves the necessary trust and acceptance to become mainstream.

Right now, in some African nations, that line is being crossed already with central digital currencies in development.

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